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In December 2023, startups breathed a sigh of relief amid better investment numbers compared to the last three months. The month recorded $1,027 million in funding in 48 deals closed, which surprisingly was better than last year's $961 million in the same month in about 57 funding deals.
According to the numbers collated by Venture Intelligence that tracks private capital and debt flows, and industry body IVCA, investments by private equity and venture capital funds as of December 20, 2023, fell to a low of USD 27.9 billion across 697 transactions, as against USD 47.62 billion inflows in 2022 across 1,364 deals.
Risk investors ET spoke with said secondary share sales are likely to continue in 2024, as the focus would be on the limited number of good assets where existing investors are looking to part-sell their stake.
Private equity and venture capital investments in Indian companies declined about 40% to $27.9 billion in 2023, compared to $47.62 billion in 2022, according to data from Venture Intelligence and the Indian Private Equity and Venture Capitalist Association. The year also saw an increase in outflows to $19.34 billion from $18.45 billion in 2022. However, industry watchers expect a rebound in funding next year.
Experts believe the trend was predominantly supported by the Santa Claus rally in anticipation of early rate cuts by the US Fed and cooling global inflation.